Apr 30, 2008

Destroying brand new cars

It seems that Mazda (owned by Ford) decided to destroy roughly $100M worth of cars after a rather odd event during transport. They weren’t sure exactly what damage had been caused to the cars and decided to destroy them rather than risk having to pay consumer claims for unknown problems later on.

What is interesting is how economic considerations have driven a rather ethical sounding outcome. Of course, the environmentalists among us will question whether they should have pushed for greater re-use instead of destruction. For example, they blew up the sturdy air-bags instead of dismantling them for reuse. Or perhaps it was not possible to pull them out intact. Or charity-minded folks might feel that they should have donated these potentially-defective cars to some charity.

What interested me in the story was the fact that the company took a bold, and probably internally unpopular, decision.

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